The net income reported on the income statement is $58,000. However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300. Net income, as corrected, is
A) $56,700
B) $58,000
C) $55,800
D) $54,500

Question

Quizplus · Accepted Answer

The net income needs to be adjusted for the unrecorded expenses. Subtract the supplies expense ($2,200) and the accrued salaries ($1,300) from the reported net income ($58,000): $58,000 - $2,200 - $1,300 = $54,500.

The Net Income Reported on the Income Statement Is $58,000